HELLO FRIENDS, PLS TELL ME WHETHER ADHOC DEDUCTION IS ALSO APPLICABLE ON THE POST OFFICE COMISSION AND WHICH FORM IS TO BE USED ITR-4 AND WHETHER IN ITR-4 IT IS TO BE SHOWN AFTER DEDUCTION ONLY.
PLS. HELP ME.
I AM IN VERY URGENT NEED.
HELLO FRIENDS, PLS TELL ME WHETHER ADHOC DEDUCTION IS ALSO APPLICABLE ON THE POST OFFICE COMISSION AND WHICH FORM IS TO BE USED ITR-4 AND WHETHER IN ITR-4 IT IS TO BE SHOWN AFTER DEDUCTION ONLY.
PLS. HELP ME.
I AM IN VERY URGENT NEED.
Dear Sir,
Ad hoc deduction to agents other than insurance agents - An ad hoc deduction, at the rate of 50% of the gross receipts of commission should be given to the authorised agents of Unit Trust of India and the agents of the following securities :
(1) National Savings Certificates VIII Issue; (2) Social Security Certificates; (3) Post Office Time Deposit Accounts; (4) Post Office Recurring Deposit Accounts; (5) National Savings Scheme, 1987; (6) Post Office Monthly Income Account Scheme; (7) Kisan Vikas Patra; (8) Public Provident Fund Accounts; and (9) Deposit Scheme for Retiring Government Employees, 1989—Circular : No. 594, dated 27-2-1991.
Generally, the commission income is shown as "income from other sources" but undoubtedly the quantum of commission will have a role to play in determining whether it will be taxable as "Business or Profession" or "Other Sources".
If Business or Profession then ITR IV (Gross receipts should also be shown )
If Other Sources then ITR 1 (Net of deductions) or ITR2 (Gross receipts should also be shown) can be filed depending upon other incomes.
Thanks Amir for this value addition .
CAclubindia
